FORT WORTH, TEXAS — An affiliate of Fort Worth-based private equity group FundCorp, Inc. has acquired Franklin, Tenn.-based Gigi’s Cupcakes, the largest cupcake franchise in the United States with more than 100 locations nationwide. Financial terms of the transaction were not disclosed.
Founded in 2008 by entrepreneur Gina “Gigi” Butler as a local boutique bakery in Nashville, Tenn., Gigi’s Cupcakes offers a variety of baked foods, including cupcakes, cakes and cookies.
|Gina “Gigi” Butler, founder of Gigi's Cupcakes|
“We are excited that we have found the perfect partner to lead Gigi’s through its next phase of growth,” said Ms. Butler, who will remain as the face of the brand and spokeswoman. “Sales are at an all-time high, and we have new franchisees interested in joining our family, so it was critical that we find someone that not only had the resources and the expertise to take Gigi’s to the next level, but also reflected our Christian values. We found that with FundCorp.”
Judy Renfrow has been named president and chief operating officer of Gigi’s Cupcakes, while Michael Poates has been hired as vice-chairman.
This is the second acquisition of a major franchise chain in the past year by FundCorp sponsored companies. In June 2015, the company acquired Gatti’s Pizza.“Gigi’s Cupcakes is exactly the type of opportunity we look for,” Mr. Poates said. “It’s a strong brand with tremendous goodwill among their franchise community that we can leverage into an aggressive franchise expansion initiative. The potential for growth is unlimited.”